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Forms of Economic Systems (Mixed (Examples - Germany, Sweden, and Russia…
Forms of Economic Systems
Command
Definition - Characterized by a dominant centralized power
Examples - Russia, Belarus, and Soviet Union
Pros - Mobilize economic resources, Wholly transform societies, It boots industrial power
Cons - Discourage innovation, Struggle to produce the right exports, Produce too much of one thing and not enough of another
Market
Definition - Relies on free markets and does not allow any kind of government involvement
Examples - Norway, Sweden, Swizerland
Pros - Freedom to choices, Efficient, Minimum of wasted resources
Cons - Costs, Pollution. Outcomes may not be equitable
Mixed
Definition - Any kind of mixture of a market and command economic system
Examples - Germany, Sweden, and Russia
Pros - Less government control, Competition is good, Independent
Cons - Taxing, A balancing act, Exploitation
Traditional
Definition - Focuses on goods and services that are directly related to its beliefs and traditions
Examples - Eastern Russia
Pros - Understanding of what to do, Aware of resources, Less destruction to the environment
Cons - Weather, Low on food supply, Changes